How The Third Stimulus Check Became Law
The American Rescue Plan was signed into law on March 11, authorizing a third round of stimulus checks that pay a maximum of $1,400 for millions of Americans. Targeted income limits, however, exclude individuals earning over $80,000 and joint tax filers making more than $160,000.
Biden said at the signing of the bill: this historic legislation is about rebuilding the backbone of this country and giving people in this nation working people and middle-class folks, the people who built the country a fighting chance. Thats what the essence of it is.
House Democrats had moved the $1.9 trillion COVID-19 relief bill to Bidens desk with a 220-211 vote just one day earlier. But progressives in the party expressed concern over Senate amendments that excluded higher-earning taxpayers from getting a stimulus payment.
Biden agreed to narrow income level requirements as a concession to moderate Senate Democrats who wanted to cap payments for individual taxpayers at $80,000 and joint tax filers at $160,000.
The Senate bill narrowly passed with a 50-49 vote on March 6 after an overnight marathon of disputed amendments and negotiations. A 50-50 tie between both parties was avoided because Senator Dan Sullivan could not vote after returning to Alaska for a family funeral.
Biden Is Proposing An Extra $200 Bump
Wall Street rebounds from last weeks rout, with Dow up more than 350 points as investors anticipate a Biden presidency that will produce a more robust stimulus.
According to CNBC, Biden has said he plans to increase Social Security payments by $200 per month, which would affect retirees as well as veterans and Supplemental Security Income recipients.
The additional benefit was first proposed by two Democratic senators, Oregons Ron Wyden and Massachusetts Elizabeth Warren. In their , the two wrote, We are pushing to include in Congress next stimulus package a $200 increase in the monthly benefit for all Social Security, Veterans, and Supplemental Security Income beneficiaries through the end of 2021. The two estimated that such a supplement would add $4,000 in the pockets of seniors and people with disabilities who have earned this benefit by contributing to Social Security with every paycheck and improve the lives of millions of Americans and help our economy stabilize and recover.
The senators also noted that many retired seniors rely wholly on those payments for income and that beneficiaries have received a supplemental payment in times of economic strife before in the wake of the 2008 economic crisis, the 2009 American Recovery and Reinvestment Act provided Social Security, SSI and other benefit recipients such as veterans with a one-time payment of $250.
When Is The Latest Round Of Stimulus Payments Expected For Ssi Ssdi Beneficiaries And Veterans
Federal beneficiaries who filed a 2019 or 2020 tax return or used the Non-Filers tool in 2020 may have already received a stimulus payment, or could get one in a future batch of checks being sent out by the government.
For most everyone else, payments started going out on April 7 by direct deposit or on your Direct Express card. For those receiving payments through the mail, those checks began on April 9. If you have a foreign address and don’t typically file a tax return, electronic payments went out around April 21 and paper checks on April 23. Veterans who don’t file taxes ordinarily should have received their payment on April 14.
The IRS and Treasury will use the information it has on file to automatically send you a check . People who have already filed a 2020 tax return this year to claim missing stimulus money may find that the IRS will use this information instead of your 2019 details if it has processed your latest return .
Some people may need to file a 2020 tax return, even if they don’t usually file, so the IRS has all the information needed to send payments to cover eligible dependents.
Recommended Reading: How Do I Replace My Social Security Card In Illinois
How Should I Claim Missing Stimulus Money For My Dependents
If you used the IRS Non-Filers tool from May 5 to Aug. 15, 2020, the IRS should have automatically issued a catch-up payment for your dependents in October 2020. If you received your original stimulus money by direct deposit, you should have gotten the catch-up payment the same way. Others would have received it in the mail.
If you filed for your missing dependent money by Nov. 21, 2020, the payment should have arrived by the end of 2020 in the same way you received your first payment . If you missed the deadline, your payment should be included on your 2020 tax return in 2021 if you file for a Recovery Rebate Credit.
To see the status of your or your dependents payment for the first or second payments, check your IRS account.
A More Targeted Stimulus Check
On 4 October, the Senior Citizens League, a non-profit organization, wrote a letter to Congress urging members to send a $1,400 stimulus check to those receiving Social Security benefits. The contents of the letter are extremely concerning, with the writers explaining in detail the lengths seniors have had to go to to make ends meet.
It begins by highlighting that the organization has heard from thousands of seniors who have exhausted their retirement savings and started eating just one meal a day or cutting their pills in half because they cant afford their prescription drugs.
Next years Cost-of-living-adjustment or COLA is expected to be announced this week.
Based on the levels of inflation seen in July and August, the SCL forecasts the COLA could reach six percent after increasing 1.3% last year. While some may argue that the financial problems experienced by seniors will be solved with the introduction of the 2022 COLA, the SCL disagrees.
The SCL has projected that the COLA may be historic in size but doubts that it will be enough to inflation. Additionally, with a significant COLA, some beneficiaries may be moved to a higher tax bracket, meaning that they could see an increase in their Medicare Part B premiums that would completely offset any gains from the COLA.
Don’t Miss: What Is My Social Security Retirement Age
Ssi And Ssdi: The Third Stimulus Payment Eligibility Requirements
As with the previous two rounds of stimulus checks, people who receive SSI and SSDI will once again automatically qualify to receive a third stimulus check, for 1,400 dollars.
For the first two rounds, those individuals were eligible so long as they had a Social Security number and werent claimed as a dependent on someone elses tax return, and so long as their household income didnt exceed the threshold set. The new bill that authorized the third check expands stimulus payment eligibility to dependents of all ages. It also increases the amount set aside for those dependents to 1,400 dollars each. Those receiving Railroad Retirement and Veterans Affairs benefits also automatically qualify for a payment, as they did in the first and second round, the IRS said.
Dont Miss: Locating Someone By Social Security Number
What If The Irs Didn’t Send Me The Full Amount For The First Or Second Stimulus Payment
According to the IRS, people who receive Social Security retirement, SSDI, SSI and Railroad Retirement benefits, as well as Veterans Affairs beneficiaries, were automatically eligible for the first two stimulus payments. If you receive these federal benefits as your only form of income, you weren’t required to file a federal income tax return in 2018 or 2019. Under the CARES Act, you should have received a stimulus check automatically.
If that money didn’t arrive, it’s possible you might have had a payment garnished for child support or funds diverted to pay a specific kind of creditor, but the rules changed with the second check. However, an IRS error could also be a potential culprit or the IRS may have needed more information about your eligibility.
To receive your money now, you need to claim the additional amount as part of tax season 2020, using the Recovery Rebate Credit. Even if you don’t usually file taxes, you’ll have to file to get the funds. The deadline for filing your 2020 taxes was extended to May 17, 2021.
In some cases — if you received a letter from the IRS confirming that your payment was sent, but you never actually got the money, for instance — you may need to contact the IRS to request a payment trace.
The IRS says you can create and then check an IRS account to see more information about your eligibility around the first two stimulus payments.
Don’t Miss: Get Social Security Early
When Will Ssdi Recipients Get The Third Stimulus Check
Those who receive federal benefits through Social Security Disability Insurance via Direct Express can expect their third stimulus payments “within the next few weeks.”
But, as of Monday, the Internal Revenue Service has yet to announce a stimulus payment date for all recipients of SSDI or Supplemental Security Income .
An IRS spokesperson told Newsweek they were “checking on that,” when asked for an update on Thursday, and has not yet replied to further requests since then.
Direct Express said last week that it does “not have specific information on timing,” while the Social Security Administration has issued no update since March 12.
Below, are the latest updates to be issued by officials at the time of publication.
What The Irs Says
The federal body hasn’t released an official update since its statement on March 12, which said: “Social Security and other federal beneficiaries will generally receive this third payment the same way as their regular benefits. A payment date for this group will be announced shortly.”
The federal body will “automatically send” third stimulus funds to those who didn’t file a tax return but are recipients of SSDI, SSI, Railroad Retirement and Veterans Affairs benefits.
However, some of those expecting to receive an automatic third stimulus payment based on their federal benefits information may need to file a 2020 tax return even if they don’t usually file taxes.
“If your third payment does not include a payment for your qualified dependent who did not receive a third payment, you must file a 2020 tax return to be considered for an additional third payment even if you don’t normally file,” the IRS noted on March 4.
The IRS is working with the aforementioned federal benefits agencies “to get updated information for 2021 to assist with stimulus payments at a date to be determined,” the federal body said on March 4.
Don’t Miss: How To Find My Son’s Social Security Number
What Social Security Administration Says
No updates have been shared by the Social Security Administration since March 12 when its website stated: “The IRS is reviewing the tax provisions of the American Rescue Plan Act of 2021, signed into law on March 11, 2021. We will add helpful Q& As to this page soon, like we did for each of the first two rounds of EIPs.
Asked Thursday when SSDI and SSI recipients can expect to receive their stimulus funds, a spokesperson for the SSA directed Newsweek to “reach out to the IRS Press Office for a response” to our query.
How Will I Be Receiving My Third Stimulus Check
If you didn’t submit a 2019 or 2020 tax return or used the Non-Filers tool in 2020 and you receive your monthly Social Security benefits by Direct Express card, it’s likely your third payment will be added to your Direct Express card, according to the Social Security Administration and this informational PDF from Direct Express. Note that you’ll receive one free withdrawal in addition to your usual free monthly withdrawal for monthly benefits.
For the first two 2020 stimulus payments, most SSI and SSDI recipients received them through a non-Direct Express bank account or as a paper check if they didn’t have current bank account information on file with the IRS. The IRS said SSI and SSDI recipients should have gotten their latest round of stimulus money the same way they received their earlier payments, including Direct Express for some.
You May Like: When Will I Get My Social Security
What Direct Express Says
In a tweet on March 16, Direct Express said: “While we do not have specific information on timing, most people will receive their stimulus payments within the next few weeks.”
The company’s latest tweet on Friday provided no further update and only said the IRS is issuing stimulus payments to “eligible recipients over the next few weeks.”
The tweet directed users to the Get My Payment portal of the IRS website “for the most current information on individual stimulus payments.”
Those who currently don’t have a Direct Express card cannot sign up for one now to receive their stimulus payments, Direct Express advised on March 15.
Third stimulus funds sent to Direct Express card accounts that were recently closed “will be returned and the IRS will reissue the payment,” the company said.
Will The Stimulus Money Affect My Eligibility For Disability Benefits
For SSI eligibility purposes, the stimulus check wonât count as income to you, and you donât need to report it as income to the Social Security Administration. Plus, itâs not taxable. In addition, for SSI, the stimulus money wonât count as a resource unless you still have all or part of it 12 months after receiving it.
For SSDI eligibility purposes, income and assets donât matter, so the stimulus check will have no effect.
Also Check: Filing For Social Security Benefits At 62
Will The Irs Tax My Third Stimulus Check
The IRS does not consider stimulus checks to be taxable income. This means that you do not have to report the money on your federal income tax return, or pay income taxes on your stimulus check.
You should also note, that if you owe taxes, you could still qualify to get a stimulus payment because the IRS does not use it to offset federal or state tax debts like it normally does with tax refunds.
For private debts, however, the American Bankers Association has pointed out a loophole in the new stimulus plan where banks and other financial services providers will be legally required to comply with court ordered garnishments. The association says that without legislation to shield your third stimulus payment, creditors or collectors can take it to pay off existing debt.
As a reference, the 2020 COVID-Related Tax Relief Act did shield stimulus payments from private debt collection: The Advance payments are generally not subject to administrative offset for past due federal or state debts. In addition, the payments are protected from bank garnishment or levy by private creditors or debt collectors.
But while your stimulus money could be taken to pay for private debt, the new offsetting rules prevent the IRS from deducting overdue child support from eligible recipients. You should keep in mind, however, that the IRS intercepted or reduced payment from the first round of stimulus checks for past-due child support.
You May Like: Non Medical Requirements For Disability
My Address Changed How Can I Tell The Irs
Many people moved in 2020, which means if you are one of those expecting a mailed check or pre-paid debit card, you may be concerned about the payment reaching you.
Unfortunately, the IRS’ “Get My Payment” site doesn’t allow people to update their addresses. Instead, the IRS is urging people to file their 2020 tax returns with their current address.
However, given that the deadline for filing 2020 tax returns has been pushed back to May 17 from its typical April 15 cutoff, there are likely millions of people who haven’t yet filed their tax forms and aren’t likely to do so before the IRS distributes most of its checks.
The IRS said that payments that can’t be delivered to eligible people will be returned to the tax agency. If that happens, the IRS’ “Get My Payment” site will show you a “Need More Information” message, which will then allow you to enter direct deposit information or ask for the stimulus check to be delivered on a pre-paid debit card.
You May Like: Estimated Social Security Benefit At Age 62
How Much Does The Third Stimulus Check Pay
The $1.9 trillion coronavirus relief plan includes a third round of $1,400 stimulus payments, topping off the $600 checks that were , and adding up to $2,000.
Congress passed the coronavirus relief plan with targeted income limits for maximum stimulus payments to individual taxpayers earning under $75,000 and joint filers making up to $150,000. But whereas the first and second rounds of stimulus payments phased out checks on a sliding scale of $5 for every $100 over the income limit, the new plan cuts off high earners at $80,000 for individuals and $160,000 for couples.
Eligibility for the third stimulus checks is based on your tax filing status. For more information on who qualifies for a third stimulus check, our tables below will help you calculate different payment options.
How Can I Get The Right Amount Of Stimulus Money For My Dependents
The third stimulus check changes the rules and makes dependents of all ages eligible for up to $1,400 each toward the household’s total payment. That includes older adult relatives and college-age children. However, some beneficiaries with dependents will need to file a 2020 tax return to receive the $1,400 per dependent, so that the IRS knows how many dependents you claim.
“People in this group should file a 2020 tax return to be considered for an additional payment for their dependent as quickly as possible,” the IRS said in a March 22 press release.
There are ways you could get more money with the third check and things to know if you had a baby in 2020. There are also tax breaks for anyone caring for children and older adults, and details on whom the IRS counts as an adult to receive their own stimulus check.
For the first stimulus check approved under the CARES Act in March 2020, qualified people with dependents age 16 or younger were eligible for up to $500 per child dependent, but not everyone actually received that extra money. For the second stimulus check, as long as your children were 16 years old or younger, they contributed $600 toward the final total of your household’s second stimulus check.
You May Like: Social Security Payment Limit